Leading franchise in U.K. banking, insurance, and investment markets; Robust asset quality; Strong returns from banking and general insurance businesses; and Reduced risk profile and earnings volatility following overseas business disposals and improved life assurance capital discipline. Earnings growth has lagged similarly rated peers; Core capitalization is weak by Standard&Poor's measures; and The group has a very high dividend payout ratio relative to peers. The ratings on U.K.-incorporated Lloyds TSB Bank PLC (LTSB) recognize its excellent business position, strong banking earnings diluted by lower life assurance returns, and stable asset quality. They are constrained by its weak core capitalization by Standard&Poor's measures, which adjust for LTSB's substantial life business. LTSB's performance is driven by its extensive
